All posts tagged Canadian household spending

Canadians have been urged to put the brakes on their borrowing ever since the country emerged from the recession.

Bloomberg News

But some warn braking too hard could cause the country’s sputtering economy to stall.

That means the Bank of Canada remains on a tightrope — trying to balance the need to keep the economy growing against the threat to stability if it keeps interest rates low and Canadian household debt continues to climb.

The Bank of Canada isn’t the only central bank caught in a balancing act.

Nouriel Roubini, an economics professor at New York University who achieved a high profile globally for forecasting the financial crisis, sketched the dilemma starkly in an opinion piece recently.

“[P]olicymakers will eventually face an ugly trade-off: kill the recovery to avoid risky bubbles, or go for growth at the risk of fueling the next financial crisis,” Mr. Roubini said. Read More »

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Canada Real Time provides insight and analysis into what’s making news in Canada, a country punching above its weight on the world stage thanks to its vast resources and strong banking sector. Drawing on the expertise of The Wall Street Journal and Dow Jones Newswires, we take a look at developments in fields ranging from business to politics to culture. You can contact the editors at canadaeditors@dowjones.com